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Question 2 4 pts Holmes' outstanding bonds have a 7% annual coupon payment and will mature in 10 years. The bonds are currently selling for
Question 2 4 pts Holmes' outstanding bonds have a 7% annual coupon payment and will mature in 10 years. The bonds are currently selling for $942.50 If the company can issue new bonds at par with similar YTM, what is Holmes' before-tax cost of debt? If Holmes' marginal tax rate is 25%, what is Holmes' after- tax cost of debt? 8.47%; 6.35% 8.06% ; 6.05% O 6.87% ; 5.15% 7.85% ; 5.89% O 7.00% ; 5.25%
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